Indonesia Plans to Blend Fuel with Ethanol, but Production Remains Low

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Adi Ahdiat 10/10/2025 19:40 WIB

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The Indonesian government plans to mandate the blending of ethanol with fuel. However, domestic ethanol production capacity is still minimal.

Actual Production and Estimated Demand for Ethanol in Indonesia (2024)*

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Indonesia Plans to Blend Fuel with Ethanol, but Production Remains Low

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Actual Production and Estimated Demand for Ethanol in Indonesia (2024)*

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The Indonesian government plans to implement the E10 policy, which involves blending 10% ethanol into gasoline-type fuel.

This was stated by Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia.

"Last night, we had a meeting with the President. The President has approved the plan for a mandatory 10 percent ethanol blend," said Bahlil, as reported by CNNIndonesia.com (7/10/2025).

"Thus, we will blend our gasoline with ethanol. The purpose is to reduce our significant imports and to produce cleaner, environmentally friendly fuel," he added.

Bahlil estimates that the mandatory blending of gasoline with ethanol in Indonesia will take effect in the next 2-3 years, or around 2027-2028.

"So we need to calculate it carefully first," said Bahlil.

However, according to Ratna Juwita Sari, a member of Commission XII of the House of Representatives (DPR), Indonesia's current ethanol production capacity is still minimal.

"Based on data from the Ministry of Energy and Mineral Resources (ESDM), the installed national ethanol production capacity in 2024 reached approximately 303 thousand kiloliters (kl) per year, with actual production only around 161 thousand kl," said Ratna in the official DPR media, Parlementaria (9/10/2025).

"However, if the E10 program is fully implemented, the national ethanol demand is estimated to reach 890 thousand kl per year, or approximately 890 million liters," she added.

According to Ratna, this gap between ethanol supply and demand must be met by increasing local production, not by purchasing ethanol from abroad.

"Green energy policies must lead to an increase in national capacity, not strengthen import dependency," she stated.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia Plans to Blend Fuel with Ethanol, but Production Remains Low

Indonesia Plans to Blend Fuel with Ethanol, but Production Remains Low

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Indonesia Plans to Blend Fuel with Ethanol, but Production Remains Low

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